Investment Rating - The report maintains a "Positive" outlook on the cosmetics and medical beauty industry, highlighting potential growth opportunities despite recent market underperformance [2]. Core Insights - The cosmetics and medical beauty sector has underperformed the market, with the Shenwan Beauty Care Index declining by 3.1% from October 31 to November 7, 2025 [3][4]. - The upcoming Double 11 shopping festival is expected to boost performance for companies like Shuangmei Co. and Maogeping, with strong sales anticipated on platforms like Douyin and Tmall [3][9]. - Key companies such as Proya, Shanghai Jahwa, and Ruifucheng have shown varying performance, with Proya's revenue for Q3 2025 at 1.736 billion yuan, down 11.63% year-on-year, while Shanghai Jahwa's revenue increased by 28% to 1.483 billion yuan [10][16]. Summary by Sections Industry Performance - The cosmetics and medical beauty sector has shown a decline, with the Shenwan Cosmetics Index down 2.6%, underperforming the Shenwan A Index by 3.3 percentage points [3][4]. - The top-performing stocks this week included *ST Meigu (+12.3%) and Jinsong New Materials (+6.2%), while Huaxi Biological and Beitaini saw declines of 7.8% and 7.4%, respectively [5]. Company Performance - Proya's Q3 2025 revenue was 1.736 billion yuan, a decrease of 11.63% year-on-year, with a net profit of 227 million yuan, down 23.64% [10][11]. - Shanghai Jahwa reported Q3 revenue of 1.483 billion yuan, up 28%, with a net profit of 140 million yuan [16]. - Ruifucheng's Q3 revenue reached 819 million yuan, a significant increase of 123.4% year-on-year, with a net profit of 33 million yuan [20]. Market Trends - The 8th China International Import Expo showcased international beauty brands, indicating a shift towards high-end markets and functional skincare products [31]. - The report highlights the increasing importance of e-commerce channels, with brands like Maogeping and Shuangmei Co. performing well on platforms like Tmall and Douyin [9][24]. E-commerce Data - In September 2025, the GMV for domestic brands on Douyin and Tmall showed significant growth, with Shuangmei Co. achieving a GMV of 8.1 billion yuan, up 47% year-on-year [24]. - The overall retail sales of cosmetics in September 2025 reached 368 billion yuan, reflecting an 8.6% year-on-year growth, driven by pre-Double 11 promotions [25][27].

Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating an expectation that the stock will outperform the market index by 5% to 15% over the next six months [6][8]. Core Insights - The company achieved significant growth in Q3 2025, with total revenue reaching 2.138 billion yuan, a year-on-year increase of 85.3%, and a net profit attributable to shareholders of 105 million yuan, up 81.57% year-on-year [6]. - The company's proprietary brand business showed remarkable performance, generating 451 million yuan in revenue, a staggering 344.5% increase year-on-year, accounting for 55.1% of total revenue [6]. - The company demonstrated strong product innovation capabilities, launching popular items that quickly gained market traction, such as the "Liquid Marseille Soap Dishwashing Liquid" and the "No Fire Aroma" product [6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported total revenue of 2.138 billion yuan, with a net profit of 105 million yuan. In Q3 alone, revenue was 819 million yuan, reflecting a 123.4% year-on-year growth [6]. - The company’s proprietary brand revenue reached 451 million yuan in Q3, marking a 344.5% increase year-on-year [6]. Brand Management - The brand management segment generated 204 million yuan in Q3, a 114.1% increase year-on-year, showcasing the company's effective brand strategy [6]. - The brand "Zhanjia" achieved 227 million yuan in revenue, ranking among the top in its category on major e-commerce platforms [6]. Future Outlook - The report projects earnings per share of 0.57 yuan for 2025 and 0.89 yuan for 2026, with corresponding price-to-earnings ratios of 72.03 and 46.59 [7][6]. - The company is expected to continue its growth trajectory, supported by its strong brand management and product innovation capabilities [6].

Core Viewpoint - Ruoyuchen has demonstrated strong financial performance in Q3 2025, leading the industry in both revenue and net profit, with significant growth in its proprietary brands and brand management services [2][6]. Group 1: Company Overview - Ruoyuchen, established on May 10, 2011, is a leading online brand management service provider in China, listed on the Shenzhen Stock Exchange since September 25, 2020 [1]. - The company operates in the e-commerce services sector, focusing on online operations, channel distribution, and brand planning, with services including brand positioning, store operations, integrated marketing, data mining, and supply chain management [1]. Group 2: Financial Performance - In Q3 2025, Ruoyuchen reported revenue of 2.138 billion yuan, ranking first in the industry, significantly above the industry average of 969 million yuan and the median of 892 million yuan [2]. - The net profit for the same period was 105 million yuan, also leading the industry, surpassing the average of 31.07 million yuan and the median of 21.64 million yuan [2]. Group 3: Financial Ratios - The asset-liability ratio for Q3 2025 was 56.52%, an increase from 27.46% in the previous year, which is higher than the industry average of 17.59% [3]. - The gross profit margin improved to 58.49% from 46.50% year-on-year, exceeding the industry average of 33.86% [3]. Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 16.13% to 22,800, while the average number of circulating A-shares held per shareholder increased by 61.32% to 9,928.1 [5]. - Notable changes among the top ten circulating shareholders include significant increases in holdings by several funds, indicating a shift in shareholder composition [5]. Group 5: Growth Drivers - Ruoyuchen's proprietary brands have become a key growth driver, with Q3 2025 revenue from proprietary brands reaching 451 million yuan, a year-on-year increase of 344.5%, marking the first time that revenue from proprietary brands exceeded 55% of total revenue [6]. - The brand management business also saw substantial growth, with Q3 revenue of 204 million yuan, up 114.1% year-on-year [6].

Investment Rating - The report maintains a "Buy" investment rating for the company [8] Core Insights - The company reported a total revenue of 2.138 billion yuan for the first three quarters of 2025, representing an 85% year-on-year increase, with a net profit of 105 million yuan, up 82% [4][5] - The company's gross margin increased by 12 percentage points to 61.02% in Q3 2025, driven by economies of scale and improved profitability from proprietary brands [5] - The proprietary brands are showing strong growth, with significant revenue increases from brands like Zhanjia and Feicui, indicating a solid market position and potential for continued performance [6] Summary by Sections Financial Performance - In Q3 2025, total revenue reached 819 million yuan, a 123% increase year-on-year, with a net profit of 33 million yuan, up 73% [4][5] - The company adjusted its earnings per share (EPS) forecasts for 2025-2027 to 0.58, 0.83, and 1.14 yuan respectively, reflecting strong growth expectations [7][8] Brand Performance - Zhanjia's revenue in Q3 2025 grew by 119% to 227 million yuan, ranking among the top in its category on major e-commerce platforms [6] - The new brand Niuyibei launched in June 2025 achieved 12 million yuan in revenue by September, with a threefold increase in GMV in August and September [6] Profitability Outlook - The company is positioned in high-growth sectors such as household cleaning and health supplements, with successful brand incubation expected to drive future growth [7] - The report projects a net profit growth rate of 94.6% for 2024, 71.7% for 2025, and 42.1% for 2026, indicating strong profitability potential [10]

New Consumption - The company Ruyuchen (003010.SZ) reported a 73% year-on-year growth in net profit attributable to shareholders in Q3 2025, driven by strong performance in its proprietary brands [2][10] - For the first three quarters of 2025, the company achieved revenue of 2.14 billion yuan, an 85% increase year-on-year, and a net profit of 105 million yuan, up 82% [2][10] - The proprietary brand business accounted for 55.1% of total revenue, with brands like Zhanjia and Feicui maintaining high growth rates [11][12] Metal New Materials - Xiamen Tungsten (600549.SH) exceeded expectations in Q3 2025, with revenue of 12.82 billion yuan, a 39.3% year-on-year increase, and a net profit of 810 million yuan, up 109.9% [15][16] - The tungsten and molybdenum segment saw significant profit growth due to rising tungsten prices, with Q3 profits reaching 1.06 billion yuan, a 98.3% increase year-on-year [16][18] - The company is positioned to benefit from the rising demand for cobalt lithium in the energy new materials sector, with a 45% year-on-year increase in sales volume [17][18] Transportation - Milkewei (603713.SH) reported a 2.1% increase in revenue to 3.64 billion yuan in Q3 2025, although net profit decreased by 3.5% to 173 million yuan [20][21] - The company's integrated logistics strategy is showing results, with total assets growing by 41.42% year-on-year, indicating rapid expansion in distribution business [21][23] - The gross margin improved to 11.2%, driven by optimization in distribution product categories [21][22] Machinery/Building Materials - Weixing New Materials (002372.SZ) experienced a revenue decline of 10.76% year-on-year in the first three quarters of 2025, with net profit down 13.52% [25][26] - The company reported a slight improvement in performance due to investment gains, with a gross margin of 43.04% in Q3 [26][27] - The company is facing challenges in operational performance despite a healthy cash flow situation [27][28] Overseas/Education Research - Tiangong International (00826.HK) is transitioning from a cutting tool manufacturer to a leader in high-end materials, focusing on powder metallurgy and titanium alloy sectors [34][35] - The company is expected to benefit from the growing demand in high-value sectors such as aerospace and consumer electronics [36][38] - The powder metallurgy technology is seen as a key platform for entering strategic new materials and high-end manufacturing markets, potentially enhancing both performance and valuation [37][38] North Exchange - Jianbang Technology (920242.BJ) reported a 9% year-on-year revenue increase to 586 million yuan in the first three quarters of 2025, despite facing credit loss provisions [39][40] - The company is expanding its product offerings in the automotive electronics sector and has initiated production at its Thailand factory [41][42] - Future growth is anticipated from the development of optoelectronic hybrid interconnection products and a focus on non-automotive components [42]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company reported a 73% year-on-year growth in net profit attributable to shareholders for Q3 2025, driven by strong performance in its proprietary brands [5][7] - The company achieved a revenue of 2.14 billion yuan in the first three quarters of 2025, representing an 85% year-on-year increase [7] - The proprietary brand business contributed significantly to revenue, accounting for 55.1% of total revenue in Q3 2025 [7] Financial Performance Summary - Revenue projections for the company are as follows: - 2023: 1,366 million yuan - 2024: 1,766 million yuan (12.25% growth) - 2025E: 3,159 million yuan (78.89% growth) - 2026E: 4,146 million yuan (31.27% growth) - 2027E: 5,005 million yuan (20.71% growth) [6] - Net profit attributable to shareholders is projected to grow from 54 million yuan in 2023 to 350 million yuan in 2027, with growth rates of 60.83%, 94.58%, 70.93%, 42.90%, and 35.61% respectively [6] - The company's gross margin improved by 12.0 percentage points to 58.5% in the first three quarters of 2025 [7] Brand Performance - The proprietary brand "Zhanjia" generated 227 million yuan in revenue in Q3 2025, marking a 118.9% year-on-year increase [7] - The brand "Feicui" achieved revenue of 203 million yuan in Q3 2025, with a sequential growth of over 98.8% [7] - The newly launched brand "Niuyibei" contributed 12.13 million yuan in revenue by September 2025, with significant growth in GMV [7] Brand Management - The brand management business generated 539 million yuan in revenue in the first three quarters of 2025, a 71.1% year-on-year increase [7] - The company focuses on the health and personal care sectors, enhancing its brand management ecosystem and operational capabilities [7]

Core Insights - The company achieved revenue of 820 million yuan in Q3 2025, representing a year-on-year increase of 123%, and a net profit attributable to shareholders of 32.51 million yuan, up 73% year-on-year [1] Group 1: Brand Performance - The self-owned brand business performed exceptionally well, generating revenue of 450 million yuan in Q3 2025, a year-on-year increase of 345%, with brands Zhenjia and Feicui showing sustained high growth [2] - Zhenjia's revenue reached 227 million yuan, up 119% year-on-year, while Feicui's revenue was 203 million yuan, with a sequential growth of over 98.8% [2] - The new brand Niu Yibei, launched in June, achieved revenue of 12.13 million yuan by September, with a threefold growth in GMV in August and September [2] Group 2: Business Segments - Brand management business saw a significant increase, with revenue of 200 million yuan in Q3 2025, a year-on-year growth of 114%, while the agency operation business experienced a slight decline, with revenue of approximately 160 million yuan, down about 3% [2] Group 3: Financial Metrics - The gross margin increased by 12.4 percentage points to 61.0% in Q3 2025, primarily due to the substantial growth in self-owned brands, which have a higher gross margin [2] - The sales expense ratio increased by 18.8 percentage points to 54.5%, attributed to increased advertising expenses and changes in revenue recognition, while management and R&D expense ratios decreased [2] Group 4: Profit Forecast and Investment Rating - The outlook for self-owned brands remains positive, with an upward revision of net profit forecasts for 2025-2027 to 181 million, 260 million, and 353 million yuan respectively, corresponding to PE valuations of 52x, 36x, and 27x [3] - The company maintains a "Buy" rating based on the strong performance of self-owned brands and brand management business [3]

Core Insights - The company reported a significant revenue increase of 85.3% year-on-year for the first three quarters, reaching 2.138 billion yuan, with a net profit of 105 million yuan, up 81.6% [1] - In Q3 alone, revenue surged by 123.4% to 819 million yuan, while net profit grew by 73.2% to 33 million yuan [1] Group 1: Business Performance - The proprietary brand business showed remarkable growth, generating 451 million yuan in Q3, a 344.5% increase, accounting for 55.1% of total revenue [1] - The brand "Zhanjia" achieved revenue of 227 million yuan in Q3, up 118.9%, and 680 million yuan for the first three quarters, a 148.6% increase [1] - The brand "Feicui" reported Q3 revenue of 203 million yuan, a 98.8% increase from Q2, with total revenue for the first three quarters reaching 362 million yuan [1] - The newly launched brand "Niuyibei" generated 12.126 million yuan in revenue by September, focusing on cost-effective single-ingredient products for the mass dietary supplement market [1] Group 2: Future Outlook - The company plans to continue focusing on proprietary brand development while maintaining steady growth in brand management and e-commerce operations [2] - The company has submitted an application to the Hong Kong Stock Exchange and is advancing its strategy for international expansion of proprietary brands, particularly in Southeast Asia [3] - The company aims to leverage the advantages of the Hong Kong capital market to support its global strategy and pursue strategic acquisitions of high-potential overseas brands [3]

Core Viewpoint - Ruoyuchen, known as the "first stock of e-commerce agency" in A-shares, has submitted an IPO application to the Hong Kong Stock Exchange to enhance its capital strength and international brand image amid a wave of IPOs in Hong Kong [1] Group 1: IPO Details - Ruoyuchen aims to list on the Hong Kong main board with joint sponsors including CITIC Securities International and GF Securities [1] - The company stated that the IPO is part of its overall development strategy to improve capital strength and enhance overseas financing capabilities [1] Group 2: Stock Performance - As of October 10, Ruoyuchen's stock price reached 43.4 yuan, with a total market capitalization of 13.5 billion yuan, reflecting a year-to-date increase of over 205% [3] - The founder, Wang Yu, expressed that the recent stock price surge has caused him sleepless nights [3] Group 3: Company Background - Ruoyuchen successfully went public on the Shenzhen Stock Exchange in September 2020, becoming a typical case of a light-asset, high-growth IPO [4] - The company was founded in 2011 by Wang Yu, who initially entered the e-commerce space with "Aigou.com" and later transitioned to agency operations for international brands [4] Group 4: Business Transformation - In 2021, facing a significant decline in net profit by over 67%, Ruoyuchen decided to pivot towards launching its own brands [7] - The first self-owned brand, "Zhanjia," was launched in September 2020, focusing on home cleaning products [8] Group 5: Growth of Own Brands - The self-owned brand "Zhanjia" achieved significant sales growth, with total sales reaching 500 million yuan, becoming the fastest-growing brand in the home cleaning sector [11] - By the first half of 2025, revenue from self-owned brands reached 603 million yuan, accounting for 45.75% of total revenue, surpassing agency operations for the first time [11] Group 6: Financial Performance - Ruoyuchen is the only listed e-commerce agency company in China to achieve both revenue and net profit growth [12] - The company's marketing expenses surged by 124% to 599 million yuan in the first half of 2025, representing 45.4% of total revenue [14] Group 7: Risks and Challenges - The company relies heavily on OEM for its self-owned products, which poses risks related to product quality and supply [14] - Ruoyuchen's revenue is highly dependent on its flagship brand "Zhanjia," which accounted for over 70% of self-owned brand revenue in the first half of 2025 [16]

Core Viewpoint - The stock price of Ruoyuchen (003010.SZ) has surged significantly, reaching a historical high of 47.36 CNY per share, which is 12.60 times its low of 3.76 CNY at the beginning of 2024, reflecting a cumulative increase of 245.35% as of October 9, 2025. This rise is supported by strong performance in sales and net profit growth, but it also raises concerns about the company's reliance on a few e-commerce platforms and imbalanced marketing and R&D expenditures [1][2][15]. Financial Performance - In 2024, Ruoyuchen achieved sales revenue of 1.766 billion CNY, a year-on-year increase of 29.28%. For the first half of 2025, sales revenue reached 1.319 billion CNY, marking a 67.55% year-on-year growth [1][4]. - The company has experienced a compound annual growth rate (CAGR) of 76.8% in net profit from 2022 to 2024, with a year-on-year increase of 85.60% in the first half of 2025 [1][9]. Brand Development - Ruoyuchen has transitioned from providing e-commerce services to developing its own brands, with significant contributions from its brands "Zhanjia" and "Feicui." The self-owned brand revenue has grown from 13.2% in 2022 to 45.8% in the first half of 2025 [5][6][7]. - The brand "Zhanjia" has achieved cumulative retail sales of 1.6 billion CNY from 2022 to the first half of 2025, with a remarkable year-on-year growth of 175.9% in the first half of 2025 [7][9]. Marketing and R&D Expenditure - The marketing expenditure in the first half of 2025 was over 30 times the R&D expenditure, raising concerns about the sustainability of this spending model. Marketing costs reached 5.99 billion CNY, with a significant portion directed towards online platforms like Douyin [2][11][12]. - R&D spending has remained relatively stable, but its proportion compared to marketing expenses has decreased significantly, indicating a potential risk in innovation and product development [12][13]. Shareholder Actions - The second-largest shareholder, Langzi Co., has been reducing its stake in Ruoyuchen, cashing out over 400 million CNY since the stock price increase began. This reduction in shareholding raises questions about the confidence of institutional investors in the company's future [3][18][20]. - The actual controllers of Ruoyuchen, Wang Yu and Wang Wenhui, have seen their salaries increase by over 50% in the past three years, reflecting the company's financial growth but also potentially raising concerns about executive compensation relative to company performance [16][19]. International Market Presence - As of the first half of 2025, 32.6% of Ruoyuchen's revenue came from overseas markets, indicating a growing international presence and diversification of revenue sources [10][15].